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Propensity is defined as a natural tendency. An example of propensity is an inborn love for writing. pl. -Â·ties. 1  a natural inclination or tendency; bent.  Obs. favorable inclination; bias (for)
1 Abbreviated APS, this is really nothing more than average saving. 2  Together with the average propensity to consumption, it indicates how a given level of income is divided between consumption and saving. 3  Marginal Propensity to Consume: This is the change in consumption resulting from a change in income.